Summary of Crane NXT's Conference Call on Acquisition of Antares Vision Company and Industry - **Company**: Crane NXT (NYSE:CXT) - **Acquisition Target**: Antares Vision - **Industry**: Inspection, detection, and track and trace technologies, specifically in life sciences and food and beverage sectors Core Points and Arguments 1. **Acquisition Announcement**: Crane NXT announced an agreement to acquire Antares Vision, a leader in inspection and track and trace technologies, enhancing its position in a $2 billion market [5][6] 2. **Market Expansion**: The acquisition allows Crane NXT to enter robust markets with strong secular tailwinds driven by counterfeiting and regulatory compliance needs [5][6] 3. **Financial Profile of Antares Vision**: Antares Vision reported approximately €200 million in revenue for 2024 with an adjusted EBITDA margin of about 15% [6] 4. **Revenue Growth Expectations**: Antares Vision is expected to achieve mid-single-digit revenue growth in 2026 and beyond [6] 5. **Employee Addition**: The acquisition will add approximately 1,200 employees to Crane NXT [7] 6. **Revenue Breakdown**: Antares Vision generates about 60% of its revenue from life sciences and 40% from food and beverage [7] 7. **Complementary Offerings**: Antares Vision's products and services are highly complementary to Crane NXT's existing capabilities, particularly in hardware and software for product traceability [10][11] 8. **Financial Terms of the Deal**: The acquisition involves purchasing shares at €5 per share, representing an enterprise value of approximately €445 million, with an EV/EBITDA multiple of about 12x [11] 9. **Expected Returns**: Crane NXT anticipates a double-digit return on invested capital (ROIC) by year five and expects the acquisition to be accretive to earnings per share (EPS) in the first full year after closing [11] 10. **Financing the Deal**: The acquisition will be financed through cash and credit facilities, with expected net leverage of approximately 2.9 times post-transaction [12] Additional Important Insights 1. **Market Dynamics**: The total addressable market (TAM) for the new segment is estimated at $2 billion, split evenly between life sciences and food and beverage [22] 2. **Competitive Landscape**: The market is fragmented with regional players and a few larger companies, with Antares Vision being a leader due to its integrated software and hardware offerings [23] 3. **Recurring Revenue**: Approximately 40% of Antares Vision's revenue is recurring, stemming from services and software offerings [36] 4. **Synergy Opportunities**: Crane NXT expects to realize low double-digit synergies primarily from productivity and operational improvements over the next three to four years [41][43] 5. **Growth Strategy**: The majority of growth is expected to come from expanding wallet share within existing blue-chip customers, with some opportunities for new customer acquisitions driven by regulatory changes [66] 6. **Historical Performance**: Antares Vision faced challenges in the past due to restructuring but has shown a positive inflection in orders recently, indicating a recovery and growth potential [49][50] This summary encapsulates the key points discussed during the conference call regarding Crane NXT's strategic acquisition of Antares Vision, highlighting the potential for market expansion, financial performance, and operational synergies.

Acquisition Overview - Crane NXT announced an agreement to acquire Antares Vision on September 12, 2025[1] - The acquisition aims to expand Crane NXT's presence in resilient and growing end markets[13] - The transaction is expected to close in the first half of 2026[28] Antares Vision Details - Antares Vision is a global leader in inspection, detection, and track & trace technologies[6] - Antares Vision's 2024 revenue was approximately €200 million[12] - Antares Vision's 2024 adjusted EBITDA margin was approximately 15%[12] - Antares Vision has approximately 1,200 employees[12] - Approximately 60% of Antares Vision's end markets are in Life Sciences, and approximately 40% are in Food & Beverage[14] - Geographically, approximately 40% of Antares Vision's business is in Europe, approximately 50% in the Americas, and approximately 10% in the Rest of World[15] - By solution type, approximately 20% of Antares Vision's business is in Services, approximately 60% in Equipment, and approximately 20% in Software[17] Financial Terms - The purchase price is €5.00 per share, with an Enterprise Value of approximately €445 million[22] - The EV/EBITDA multiple is approximately 12x, or approximately 10x after expected synergies[22] - The company expects double-digit ROIC by year 5[22] - The acquisition is expected to be EPS accretive in the first full year after closing (2027)[22] - Net leverage is expected to be approximately 2.9x once the acquisition is complete in the first half of 2026[22]